CoreWeave Stock Slides 10% After Raising Q2 Capex, Secures $108M AI Order
CoreWeave's stock tumbled over 10% after forecasting lighter-than-expected Q2 revenue and raising capital expenditures by 20%, even though revenue more than doubled year-over-year and backlog stands at $100 billion. The company booked a $108 million AI computing order from the Nvidia CEO’s foundation and equity expansion outpaced liabilities despite heavy debt.
1. Q2 Guidance Miss Spurs Stock Drop
CoreWeave issued Q2 revenue projections below analyst estimates and forecast a 20% increase in capital expenditures, triggering a more than 10% decline in its share price. This guidance came despite revenue soaring over 100% year-over-year and support from a $100 billion project backlog.
2. $108 Million AI Compute Order
The company secured a $108 million purchase of AI computing capacity by the Nvidia CEO’s foundation, which will be donated to research institutions. This large-scale deal underscores CoreWeave’s growing role in supplying high-performance cloud infrastructure for advanced AI workloads.
3. Balance Sheet Dynamics
CoreWeave reported equity growth outpacing liabilities, a sign of improving financial fundamentals, yet the balance sheet remains under pressure from heavy debt and widening operating losses. Investors remain cautious as margin compression persists alongside elevated spending on infrastructure.